Cheap drug cap raises outcry

Health activists are up in arms over the Commerce Ministry's call for no more drugs to be listed under the compulsory licensing policy.

The move is being seen as appeasement of the United States and its pharmaceutical industry.

Nimit Thien-udom, director of the Aids Access Foundation, said yesterday health advocacy groups would seek a meeting with Deputy Commerce Minister Alongkorn Ponlaboot to clarify the ruling before he sets off for Washington.

Mr Alongkorn was scheduled to hold talks with staff of the US Trade Representative next week.

His main agenda would be to try to resume the Thai-US free trade agreement stalled after the military coup in 2006 and convince US trade officials to remove Thailand from the Priority Watch List .

Thailand was downgraded from the Watch List to PWL in 2007 because of its deteriorating intellectual property rights protection, according to the US administration.

The move came after the government headed by Gen Surayud Chulanont imposed the compulsory licensing (CL) policy on cheap drugs. The US administration denied any link between Thailand trade status and the CL policy but health advocacy groups in Thailand and elsewhere saw it otherwise.

Compulsory licensing allows a government to produce a patented product or process without the consent of the patent owner. It comes under the World Trade Organisation agreement on intellectual property to give developing countries greater access to drugs.

Public Health Minister Witthaya Kaewparadai has said the present government would continue the policy.Mr Alongkorn's visit to the US comes as the USTR was reviewing the status of all its trade partners, including Thailand. The annual review would be launched in May in the Special 301 Report.

Lobbyists representing drug firms reportedly want Washington to downgrade Thailand's status further, to Priority Foreign Countries (PFC) listing. Trade status is linked to the Generalised System of Privileges (GSP) the US administration offered its trade partners.

"It is really bad for him [the deputy commerce minister] to trade the lives of the people with an illusion drugs companies have created," Mr Nimit said.

The uproar follows a Feb 24 letter sent by Intellectual Property Department chief Puangrat Asavapisit to permanent secretary for public health Prat Boonyawongwirote. It detailed concerns among the US private sector, especially the pharmaceutical industry, about intellectual property rights violations in Thailand.

The letter said Thailand might be persuaded not to use CL on drugs in the future as an inducement for the US to take the country off the PWL.

Mr Nimit said no evidence had been found to link the policy on cheap drugs to the US slashing of import tariff privileges under the GSP.

The CL policy has increased people's access to proper treatment and improved their quality of life. This has economic value of almost 4.5 billion baht, Mr Nimit said.

He said the Thai government should not kowtow to US demands and place too much weight on the PWL, as it would be used to put pressure on the country.

Intellectual Property Department deputy chief Wiboonlaksana Ruamraksa yesterday said her department had sent a letter to the US to protest against any attempt by drug companies to downgrade Thailand's status further.

She said Pharmaceutical Research and Manufacturers of America and Biopharmaceuticals of the US had asked the USTR to lower Thailand's status.

Ms Wiboonlaksana said Thailand had not declared CL on any drugs in 2008.

She also said Mr Alongkorn's trip to the US should convince Washington of Thailand's determination to crack down on property rights violations.

Mr Witthaya said his ministry's task was to clarify its CL policy to the Commerce Ministry. "And the ministry will state only facts and place the national interest first," he said.

He said he told representatives of the US-Asean Business Council on March 2 the ministry would reserve the rights to use CL in cases of emergency.

"The use of CL has wide consequences, including on foreign relations," he said. "If it is required, we will not hesitate to declare a CL."

Mr Witthaya said Thailand should send a signal to the US and its pharmaceutical industry to respect Thailand's right under the Agreement on Trade-Related Aspects of Intellectual Property Rights to issue a compulsory licence.